Clearfield(US:CLFD)2025-02-07 17:00Financial Performance - Net sales for the three months ended December 31, 2024, were $35,476,000, an increase of approximately 4%, or $1,246,000, from $34,230,000 for the same period in 2023[105] - Net sales to Broadband Service Providers increased to $33,440,000, up from $31,915,000, while sales to Legacy customers decreased to $2,036,000 from $2,376,000[105] - The Clearfield segment net sales increased by 6%, or $1,597,000, to $29,698,000 for the three months ended December 31, 2024, driven by increased demand from National Carrier and Community Broadband customers[120] - The Nestor Cables segment net sales decreased by 6%, or $351,000, to $5,778,000 for the three months ended December 31, 2024, due to decreased demand[122] Cost and Expenses - Cost of sales decreased by $2,239,000, or 8%, to $27,294,000 for the three months ended December 31, 2024, resulting in a gross profit increase of $3,486,000, or 74%, to $8,182,000[109] - Selling, general and administrative expenses decreased by $701,000, or 6%, to $12,158,000 due to cost management efforts[110] Loss and Net Income - Loss from operations decreased by approximately 51% to $3,975,000 for the three months ended December 31, 2024, compared to a loss of $8,162,000 for the same period in 2023[111] - Net loss for the three months ended December 31, 2024, was $1,906,000, or $0.13 per share, down from a net loss of $5,268,000, or $0.35 per share, for the same period in 2023[115] - The income tax benefit decreased to $426,000 for the three months ended December 31, 2024, from $951,000 for the same period in 2023, primarily due to decreased loss from operations[114] Cash Flow and Investments - As of December 31, 2024, the company's cash, cash equivalents, and short-term investments totaled $113,014,000, a decrease from $130,992,000 as of September 30, 2024[124] - The company reported net cash provided by operating activities of $7,150,000 for the three months ended December 31, 2024, compared to $10,800,000 for the same period in 2023[126][127] - The decrease in inventory was $6,871,000 for the three months ended December 31, 2024, attributed to reduced inventory purchases as the company utilized existing stock[126] - The company received proceeds from the maturity of investment securities of $54,476,000 during the three months ended December 31, 2024, compared to $51,068,000 in the same period of 2023[128][129] - Cash used for stock repurchases was $6,275,000 for the three months ended December 31, 2024, down from $12,184,000 in the same period of 2023[130][132] - The company invested $39,015,000 in investment securities during the three months ended December 31, 2024, compared to $47,748,000 in the same period of 2023[128][129] Operational Metrics - Order backlog as of December 31, 2024, was $26,028,000, an increase of 3.6% from $25,133,000 as of September 30, 2024, but a decrease of 40% from $43,451,000 as of December 31, 2023[107] - Days sales outstanding decreased by 11 days to 36 days as of December 31, 2024, compared to 47 days as of December 31, 2023[126] Market Risks - The company is exposed to market risks from fluctuations in foreign currency exchange rates, with a potential impact of approximately $144,000 on operating expenses if the Euro fluctuated by 10% against the U.S. Dollar[138]